Delegate Information Package - Insurance Institute of Canada
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Delegate Information Package
Thank you to our sponsors:
AGENDA
8:00 am – 8:45 am Breakfast and Registration (Main Dining Room)
8:45 am – 9:00 am Introduction and Welcoming Remarks (McFadden/Fletcher Room)
9:00 am – 9:30 am Morning Keynote Speaker (McFadden/Fletcher Room)
Dr. Barry Kay
Political Expert and Professor at Wilfred Laurier University
9:30 am – 9:45 am Break
9:45 am – 11:00 am Morning Seminar Session A:
1. Autonomous Vehicles (McFadden Room)
2. Cannabis Legalization (Fletcher Room)
3. Artificial Intelligence (MFUA Room)
11:00 am – 11:15 am Break
11:15 am – 12:30 pm Morning Seminar Session B:
1. Autonomous Vehicles (McFadden Room)
2. Cannabis Legalization (Fletcher Room)
3. Artificial Intelligence (MFUA Room)
12:30 pm – 1:15 pm Lunch (Main Dining Room)
1:15 pm – 2:30 pm Up Close and Personal: Senior Leadership Panel
(McFadden/Fletcher Room)
2:30 pm – 3:00 pm Ice Cream Social (Main Dining Room)
3:00 pm – 4:00 pm Afternoon Keynote Speaker (McFadden/Fletcher Room)
Mr. Max Valiquette
Innovation, transformation and marketing expert
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mingle with the industry community.
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Served with tea, coffee and soft
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Breakfast Event
Sponsored by:
Morning Keynote Speaker
McFadden/Fletcher Rooms
Dr. Barry Kay
Political Expert and Professor
Wilfrid Laurier University
Dr. Kay is a respected commentator on the local and global political environment we live in – and will
speak to effects on the industry. His academic research has focused upon public opinion and
elections, and he has authored or co-authored over thirty-five articles in research journals, ten in the
Canadian Journal of Political Science alone. He has also been quoted widely in the popular press,
appearing in various newspapers including the Toronto Star and Ottawa Citizen, as well as the
Waterloo Region Record and Guelph Mercury. He has also developed an electoral seat projection
model which has been widely quoted in media, and is accessible at the wlu.ca/lispop website. In
recent elections he has served as a political consultant and election analyst for Global Television and
CTV-Southwest Ontario.
Sponsored by:
Autonomous Vehicles and
Ethical Considerations
McFadden Room
PRESENTERS:
Kadey Schultz
Partner
Schultz Frost LLP
Charles Gluckstein
Partner
Gluckstein Lawyers
Sponsored by:
Autonomous Vehicles and Ethical Considerations Presenter Information Kadey Schultz Partner Schultz Frost LLP Kadey BJ Schultz is the co-founding partner of Schultz Frost LLP, a Toronto based litigation firm specializing in coverage, defence and prosecution work for insurers, self-insured entities and re- insurers. For 20 years, Kadey has acted as anti-fraud counsel for various insurers, defending and prosecuting against opportunistic and vertically integrated fraud. She is a strategic partner with many self-insured programs, designing and enforcing prevention and mitigation systems, in addition to handling policy design, coverage and defence matters. This work has naturally led Kadey to her engagement with Artificial Intelligence, Cyber Resilience and Cyber Risk work. As part of Kadey’s professional commitment to the insurance industry, she is completing her Certified Risk Management designation with the University of Toronto (December 2018). Kadey’s risk management training augments her strategic advice, whether on a litigation file or while engaged to provide policy design, curriculum development or a Gap Analysis. She is speaking at RIMS Canada in Newfoundland in September on Cyber Risk and Social Media. Kadey is a prolific speaker and is extensively published within the insurance industry, regularly contributing to RIMS Canada, the Insurance Institute of Ontario, the Ontario and Canadian Insurance Adjusters’ Associations, the Law Society of Ontario and the Canadian Defence Lawyers Association. Since 2014, she has been an adjunct professor with the University of Windsor Faculty of Law and is a past adjunct professor with Brock University and guest faculty with the Ontario Provincial Police and Ontario Police College. In 2018, Kadey was honoured with the Lexpert Zenith Mid-Career Excellence Award in Commercial Insurance, after winning the Lexpert Rising Stars Top 40 under 40 Lawyers In Canada award in 2015. She was acknowledged as a US/Canada Litigator to Watch in 2014. Kadey received the Richard B. Lindsay Exceptional Young Lawyer Award from the Canadian Defence Lawyers Association in 2010. In addition to Kadey’s vibrant legal and consulting practice, she is a member of the Board of Directors of the Holland Bloorview Kids Rehabilitation Hospital Foundation in Toronto and is on the Council of the Medico-Legal Society of Toronto.
Charles Gluckstein Partner Gluckstein Lawyers Charles was called to the Ontario Bar in 1999 and is a Specialist in Civil Litigation, which encompasses personal injury, motor vehicle claims, medical and professional negligence, occupier’s liability issues, and products liability. Charles commands a thorough knowledge of all relevant Automobile Legislation, providing trusted experience for all aspects of dispute resolution. Charles advocates for results that achieve maximum recovery of lifestyle for each one of his clients. Currently, Charles is the Past President of the Ontario Trial Lawyers Association. He is a member of the Advocates Society, the Ontario Bar Association, the American Association of Justice and the Medico-Legal Society of Toronto. Since 1999 Charles has served as director of the Advisory Board. Charles served as a Director of the Brain Injury Association of Toronto from 1998-2001. He also provided counsel to the Active Living Alliance of Ontario for individuals with a disability from 2002- 2004. Since May, 2010 to present, Charles has been recognized by his peers in the annual Canadian Legal LEXPERT® Directory as one of the most “repeatedly recommended” lawyers in the personal injury area of practice for Toronto, Ontario. Published since 1997, this annual comprehensive guide identifies leading lawyers across Canada. In September, 2011 Charles was recognized by the Law Society of Upper Canada as a Specialist in Civil Litigation. In October, 2014, Charles was recognized by his peers with the LEXPERT Zenith Award as the Leading Lawyer in Practice Excellence for Personal Injury, and was the only lawyer in that field to be recognized for this award. Charles writes articles in the areas of personal injury, disability and insurance law and is a frequent guest lecturer for conferences, seminars and medical-legal workshops.
Driverless Cars: The Future of Transportation and
Its Impact on Insurance Litigation
Charles E. Gluckstein, Gluckstein Personal Injury Lawyers
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Kadey BJ Schultz, Schultz Frost LLP
Car companies are promising to fill the roads with robo-taxis, driverless delivery cars and sentient
shuttles that will transform the way that we move, work and ultimately reduce car accidents. Aside from
passenger cars, many different vehicles are being developed to be self-driving, including taxis, shuttles, trains,
trucks, ships and planes. It is estimated that by 2021, there will be 51,000 autonomous vehicles operating
worldwide, with sales projected to rise to nearly 1 million by 2025 and 33 million by 2040. This paper discusses
the future of transportation with driverless vehicles and the impact that this will have on motor vehicle litigation,
specifically insurance. Please note that Kadey and Charles intend to be very retired by 2040!
The great thing about insurance is that we are an industry which is constantly learning and evolving. We
have avoided becoming antiquated despite being one the oldest businesses. As the industry turns its mind to
autonomous vehicles, it is a very exciting time for those committed to continued growth and learning! For people
who are not of that mindset, and who will resist adopting new technologies, the next 20 years will feel a lot
harder.
What can we expect? Adjusting practices will change. First, the process of making adjusting decisions
will become more and more forensic. The need to gather data, and establishing rights to the information,
software and data related to a claim will be paramount. Second, we will rely on different skill sets to make
adjusting claim (and litigation) decisions. Working with engineers, cyber specialists, and data analysts will
become integral to adjusting. Third, the most important step in a claim will be to preserve the technology and
data generated in an accident. Evidence has always been crucial for comprehensive adjusting decisions, but the
technical nature of the evidence we rely on will be much more complex. Fourth, in the next 10 to 25 years,
identifying who to sue, who not to sue, and how to manage the expense associated with disruptive litigation will
be a major challenge. Legal rules, tests and precedents that have yet to be decided will develop and help us
navigate these unchartered waters. Until these issues are firmly established, the costs of litigation will
undoubtedly increase.
What can we do to prepare for these changes? Insurers will want to invest in in-house self-sufficiency to
protect their bottom line and increase overall efficiency. Insurers and independent adjusters will have to become
more aggressive with their investment into technology to maximize what is managed in-house versus sending
everything off to external engineers, scientists etc. for opinions, analysis and advice.
How might these changes affect us all beyond driverless roads? With the advancement of autonomous
vehicles, there will be a simultaneous enhancement of diagnostic and rehabilitation experiences. Faster
diagnosis, clearer test results and images, will have the potential to improve our assessment of disease, illness
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With contributions from Jessica Golosk, Associate – Gluckstein Personal Injury Lawyers and Cereise Ross, Summer
Associate – Schultz Frost LLPand injuries. Head injuries are the most cited injury in motor vehicle accidents. The assessment of
comprehensive concussion assessments, for example, can only be done post-mortem. With improved imaging,
a physician’s ability to diagnosis and treat head injuries will improve, and so will the information available to an
adjuster. How we handle all things related to car accidents, are going to change significantly.
The Evolution of Autonomous Vehicles
Autonomous vehicles can navigate and transport passengers without human intervention or control.
Vehicle automation is a spectrum, with fully human driven vehicles on one end and fully autonomous vehicles
on the other. Automation technology is now commonplace with features ranging from the simple (for example,
autonomous light-sensing headlamp systems) to the more sophisticated (such as autonomous parking).
There are multiple definitions for the various levels of automation and a need for standardization to aid
with clarity and consistency. The United States’ National Highway Traffic Safety Administration (NHTSA) has
adopted the Society of Automotive Engineers (SAE) International definitions for the different levels of
automation. The SAE definitions divide vehicles into levels based on who does what and when. There are six
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levels of automation, ranging from fully driver-operated to completely driverless:
2
Stephen Mraz, Machine Design, “SAE’s 6 Levels of Self-Driving Cars”, (January 23, 2017), online:
.• No auotmation
• The car is not autonomous in any way and the human driver does all the driving
Level 0 tasks;
• Driver assistance
• The human driver and computer system work together on driving tasks. An
autonomous system on the vehicle can sometimes assist the driver with steering
Level 1 and/or acceleration/deceleration, but not both. Ultimately, the human driver is
expected to do most of the work
• Partial assistance
• An autonomous system can control both the steering and
acceleration/deceleration simultaneously. The driver still has to monitor the roads
Level 2 at all times and perform the driving tasks;
• Conditional assistance
• An autonomous driving system can perform all aspects of driving in some
circumstances. In those circumstances, the driver must be ready to take back
Level 3 control when requested to do so. The driver performs the driving otherwise;
• High automation
• An autonomous driving system can do all the driving tasks in some circumstances.
Level 4 The driver need not pay attention; and
• Full automation
• An autonomous driving system can do all driving tasks in all circumstances. The
Level 5 human driver is purely a passenger in the vehicle.
Elon Musk, founder and CEO of Tesla, predicts that true level 5 autonomy will be accessible by 2019.
Musk expects “full self-driving capability” option will eventually enable level 5 autonomous driving, which means
fully autonomous vehicles will be able to operate in any and all conditions.3 The projected timeline from many
other auto manufacturers is still years away. Given the current regulatory landscape, it is likely that autonomous
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vehicles will be integrated later into our society. The burning question is: how much later?
3
Frederic Lambert, “Elon Musk clarifies Tesla’s plan for level 5 fully autonomous driving: 2 years away from sleeping in the
car”, (April 29, 2017), online: https://electrek.co/2017/04/29/elon-musk-tesla-plan-level-5-full-autonomous-driving/
4
Fred Lambert, Electrek, “Elon Musk clarifies Tesla’s plan for level 5 fully autonomous driving: 2 years away from sleeping in
the car”, (April 29, 2017), online: ;
Alan Ohnsman, Forbes, “Musk Admits Tesla’s Autonomous Drive System May Need More Computing Horsepower”,The Benefits of Autonomous Vehicles
Making the Roads Safer = Fewer Collisions
The benefits of driverless vehicles depend on the level of automation. Arguably, the most significant
benefit of driverless vehicles is safety. We have witnessed our roads become safer through the introduction of
numerous safety features; the number of accidents in Ontario has decreased by one third from 90,000 in 2008.
Technology will only continue to make our roads safer and there will certainly be a negative correlation between
vehicle autonomy and motor vehicle accidents.
Effect on the Personal Injury Bar: Fewer Vehicles = Fewer Injuries
Vehicle reduction coupled with the elimination of human error has the potential to significantly reduce
the number of motor vehicle accidents per year. The impact that this will have on lawyers whose practices are
built on motor vehicle accident litigation should not be underestimated. Morgan Stanley, for example, estimates
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that a 90% reduction in crashes in the U.S. would save 30,000 lives and prevent 2.12 million injuries annually.
While the full impact on the personal injury bar cannot be stated with great certainty, there can be no doubt that
in the driverless future, the role of personal injury lawyers will change significantly. The number of accidents
causing injuries is obviously lower in Canada. If, however, we were able to reduce accidents by 90%, then the
110,000 collisions causing personal injuries in 2014, for example, would be reduced to 11,000.
Increasing Productivity
Self-driving vehicles may bring the possibility that time currently spent commuting will be available for
productive use, such as working and staying connected. The driver’s attention to the road and driving tasks may
be replaced with attention to screens and other devices. Americans waste 5.5 billion hours in traffic per year,
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which translates into $120 billion in lost human potential. According to the 2016 census, Torontonians have the
longest commute in Canada. The average Toronto commuter spends just over a half an hour getting to work
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each day, placing their commute at over one hour per day. This is one extra hour of time that could be put to
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productive use rather than watching the road, or to rest.
(November 1, 2017), online: .
5
Zack Kanter, Business Insider, “How Uber’s autonomous cars will destroy 10 million jobs and reshape the economy by
2025”, (February 5, 2015), online: .
6
Adam Werbach, The Atlantic, “The American Commuter Spends 38 Hours a Year Stuck in Traffic”, (February 6, 2013),
online: .
7
Leslie Young, Global News, “Toronto has the longest commutes in Canada. How does your commute compare?”,
(November 29, 2017), online: .
8
Matthew DeBord, Business Insider, “Why driverless cars probably won’t make us any more productive”, (September 14,
2016), online: ; David Dudley, Citylab, “What
Will We Be Doing in Our Self-Driving Cars?”, (September 15, 2016), online: .In theory, autonomous vehicles will allow passengers to be more productive. In reality, however, it is
unlikely that we will use this time productively. A 2016 report from the University of Michigan’s Sustainable
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Worldwide Transportation research consortium shows that people will use this time to do anything but work:
In 2016, drivers were asked…
How would you use your time in an autonomous vehicle?
36% of passengers will still watch the road;
23% of passengers wouldn’t ride in an AV;
10% of passengers will socialize and/or use social media;
10% of passengers will read (but not work);
5% of passengers will watch television;
5% of passengers will be “productive”; and
Some passengers will get motion sick.
In 2017, drivers were asked…
Would you take a driverless vehicle on your commute?
62.49% said “Yes, this sounds like a great way to get around.”
16.89% said “No, I don't quite trust the technology.”
18.42% said “Maybe, but I'd want to see it in action first.”
2.2% said “I don't take transit.”
Total Votes: 2,362
Environmental Effects
Advocates for driverless vehicles fantasize about a world with no parking lots, more green spaces and
less congestion, based on the premise that rideshare programs, such as Uber, will eventually replace traditional
ownership. In February, 2015 Uber announced a partnership with Carnegie Mellon University and boasted that
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their future fleet is driverless. Driverless cars can produce 56% less fuel emissions and save 724 million
9
David Dudley, Citylab, “What Will We Be Doing in Our Self-Driving Cars?”, (September 15, 2016), online:
; Michael Sivak and
Brandon Schoettle, Sustainable Worldwide Transportation, University of Michigan “Would Self-Driving Vehicles Increase
Occupant Productivity?”, (September 2016), online: .
10
Byron Spice, Ken Walters, and Kristin Carvell, Carnegie Mellon University, “Uber, Carnegie Mellon Announce Strategic
Partnership and Creation of Advanced Technologies Center in Pittsburgh”, (February 2, 2015), online:
; Laura Bliss, Citylab, “Pittsburgh Is Going11
gallons of gas. Again, the extent of this benefit will depend on level of autonomy as well as the rate of
adoption of autonomous vehicles, and requires a smooth transition through various stages between driver-
controlled and driverless vehicles.
Unfortunately, 2018 has had some setbacks in the adoption of self-driving cars by some companies.
Uber, for example, suspended its testing of self-driving cars in March— including in Toronto — after a fatal
pedestrian crash involving an autonomous vehicle in Arizona. Video release of the accident, with vantage points
from inside and outside of the vehicle, “shows a complete failure of the system to recognize an obviously seen
person who is visible for quite some distance in the frame,” said Michael Ramsey, research director with Gartner
and an expert on self-driving cars. “Uber has some serious explaining to do about why this person wasn’t seen
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and why the system didn’t engage.” It is highly unlikely that these setbacks will germanely stall the introduction
of autonomous vehicles, however, these losses will fuel debates on the moral dilemma and ethical assumptions
we typically impose on human drivers, now operating as passengers in autonomous vehicles.
Increasing Access to the World
There are many individuals who are unable to drive for varying reasons. Ontario’s current requirements
to hold a driver’s license can limit the independence of individuals. Fully autonomous vehicles can provide
independence to individuals who have been reliant on other people and transit in the past. However, to be able
to provide a safe and reliable service for those who are unable to take control when necessary, these vehicles
must be truly autonomous, not requiring any driver control.
Many people, whether disabled, elderly or a non-driver by choice, are reliant on others to take them
where they need to go, whether for assistance getting onto a bus or a drive to an appointment. Autonomous
vehicles could not only remove the need for someone to drive but could potentially be programmed to know the
time and location of appointments or social gatherings.
There is a huge potential to improve lives by increasing access to transportation. A lack of access to
transportation and independence can leave people living with disabilities isolated, unable to access services,
and prevented from become self-sufficient.
Driverless”, (August 18, 2016), online: .
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Jim Lipman and Andrew Faulkner, ChipEstimate.com, “The Rise of Autonomous Vehicles”, online:
.
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Carolyn Said, Video shows Uber robot car in fatal accident did not try to avoid woman” San Francisco Chronicle (March
21, 2018), online: < https://www.sfchronicle.com/business/article/Uber-video-shows-robot-car-in-fatal-accident-did-
12771938.php#photo-15258592>.The Dangers of Autonomous Vehicles
There are several jobs that currently exist which may be replaced by driverless vehicles. Industries may
see their businesses dry up due to the benefits of autonomous vehicles. Direct employment displacement may
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include, but is not limited to, the following jobs:
Transportation Insurance & Legal Safety
•Transport, truck and courier •The auto insurance industry •Traffic police
service drivers •Legal staff involved with •Road safety professionals
•Taxi drivers and chauffeurs motor vehicle accidents •Tow truck drivers
•Bus drivers
Healthcare
Services •Trauma surgeons
•Driving instructors and •Critical care health staff
trainers •Medical staff involved in car
•Parking attendants crash victim rehabilitatio
•Health staff involved with
organ and tissue donation
The Impact on Motor Vehicle Litigation
The Government of Ontario passed legislation in 2015 which defines an automated vehicle as a motor
vehicle with an automated driving system that provides conditional, high or full driving automation as set out by
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the Society of Automotive Engineers. Ontario Regulation 306/15 defines an automated driving system as “a
system that performs dynamic driving tasks to operate a vehicle with limited or no need for any driving tasks to
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be performed by a human driver.”
Insurance Policies: From the Individual Driver to the Manufacturer
The impact of autonomous vehicles on motor vehicle legislation and litigation is significant. According to
the Insurance Institute of Canada’s 2016 Report (“Autonomous Vehicles: Implications for the Insurance Industry
in Canada”) auto insurance accounts for half of the premium revenue generated by the insurance industry in
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Canada.
13
Report of the Standing Senate Committee on Transport and Communications, “Driving Change: Technology and the future
of the autonomous vehicle”, (January 2018), online:
.
14
Ontario Regulation 306/15 made under the Highway Traffic Act, Pilot Project – Autonomous Vehicles, 2015, online:
.
15
Ontario Regulation 306/15 made under the Highway Traffic Act, Pilot Project – Autonomous Vehicles, 2015, online:
.
16
Insurance Institute, “Autonomous Vehicles: Implications for the Insurance Industry in Canada”, (2016), online:
.There will have to be changes to the nature and wording of car insurance policies with the introduction
of increasing levels of autonomy in our society. Each car has a manufacturer and is composed of parts.
Computer programs and software are relied on by manufacturers to produce their current products. Insurance
premiums that were once based on the risk posed by an individual driver may instead become based more on
the risk associated with the manufacturer and the software within the vehicles. The insurance industry will need
to balance the evolving product risk with the traditional assessment of driver risk. Failure of a single component
in a fleet of autonomous vehicles could introduce the risk of large-scale insurance claims. The role of
underwriting and actuaries is a moving target for the next 20 to 30 years.
The Impact on Liability
The introduction of autonomous vehicles will challenge our understanding of disability to date. Parties
that could be liable for an accident may include the vehicle manufacturer, the manufacturer of a component
used in the autonomous system, the software engineer who programmed the code for the autonomous
operation of the vehicle, the road designer in the case of an intelligent road system that helps control the vehicle
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and the owner responsible for initiating the software updates, the purchaser, the retailer etc.
The adoption of self-driving cars may make liability arguments more complicated for a period. The
scope of what needs to be investigated will increase and may lead to a lot of red herrings as adjusters try to
identify risks and determine liability.
In the short term, there will be an increase in the costs of disputes. It will take us time to adapt to it not
being offensive that the driver was looking away, or down at a device, as opposed to paying attention to the
road ahead of them. The culture surrounding what we believe is “safe driving,” and liability must catch up with
the technological advancements.
In the long term, changes will occur in the way that claims departments and lawyers are required to
assess liability. Maintenance of a vehicle’s computer-based components may play a more significant role in
determining liability. Maintenance service providers, such as municipalities, may play a more significant role in
preventing collisions and may face liability if an autonomous or semi-autonomous vehicle needs to be able to
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detect lane markers and they are either worn out or covered due to a failure to maintain the road.
The use of traditional tools for assessing liability, such as witness statements, are likely to decrease in
significance. Instead, forensic evidence relating “who” was “driving” the vehicle will become increasingly
important. Collecting and preserving this data at the scene of the accident will impact the way that collisions are
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investigated.
17
Merchant, Grary and Lindor, Rachel “The Coming Collision Between Autonomous Vehicles and the Liability System”
(2012) 52 Santa Clara L. Rev. 1321.
18
McCague Borlack LLP, “Autonomous Vehicles – The Next Frontier”, (November 2015), online:
.
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Nicole Mangan, The Lawyer’s Daily, “Autonomous vehicles bring looming liability challenges for insurers and lawyers”,
(November 15, 2017), online: .Effect on Insurance Premiums and Regulation
As safety improves with greater automation, it is expected that insurance premiums will decrease. This
is already occurring. For example, in 2016 insurers began offering a discount on premiums for vehicles
equipped with an Automatic Emergency Braking (AEB) system, designed to detect front-end collisions that will
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automatically apply the brakes.
Automotive telematics is defined as the information-intensive applications enabled for vehicles by a
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combination of telecommunications and computing technology. Telematics requires the capture, storage, and
exchange of data collected through sensors, which is used to obtain remote services. The risks attached to such
data likely include personal information, which requires proper handling to protect the driver’s privacy.
In response, regulators will need to balance issues relating to liability, freedom and privacy. The
information captured by using telematics allows insurers to create a premium that accurately reflects the risk the
company is taking in insuring a specific driver. Using this information, insurance companies may choose to
create a spectrum of policies, and eventually will dictate which policy protections are necessary for all
autonomous vehicles. Until then, the amount of information that a driver is willing to provide to insurance
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companies may determine the amount and the particulars of their policy.
We will likely see a more collaborative relationship between insurers, who need data and autonomous
vehicle manufacturers who need the support of insurance companies.
Concerns about Cyber-attacks and Privacy
An additional liability concern is the risk of a hacker gaining access to the autonomous vehicle’s
operating system and causing an accident. Although this problem also exists with conventional vehicles with
high-tech components such as Tesla’s Model S (shutting off while driving) and the Jeep Grand Cherokee (being
commandeered remotely), the problem is enhanced when the vehicle is completely autonomous and relies
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entirely on a computerized network to operate.
The data collected and shared with third-party organizations, such as insurance companies,
governments and other manufacturers, creates more risks for privacy breaches. Autonomous vehicles will have
the ability to record and transmit information on the vehicles location, energy usage, speed, temperature and
other control settings. The more personalized these vehicles become, the more individualized data that they will
have access to.
20
Aviva Canada, “Prevention pays off: automatic emergency braking = 15% auto insurance discount”, (November 28, 2016),
online: .
21
Duri S. et al., “Data Protection and Data Sharing in Telematics” IBM T.J. Watson Research Center, (Hawthorne, NY) 2003
Kluwer Academic Publishers, online: < http://winlab.rutgers.edu/~gruteser/papers/Sas04.pdf>.
22
McCague Borlack LLP, “Autonomous Vehicles – The Next Frontier”, (November 2015), online:
.
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McCague Borlack LLP, “Autonomous Vehicles – The Next Frontier”, (November 2015), online:
.The potential risk to your data is not limited to the data collection of the use of the vehicle that is going
to be shared. It’s also concerning the automatic importing of your data from all your other devices through the
vehicle system, and what privacy risk or guarantees are presented. For example, a phone’s contact list is
automatically synced to a vehicle. These contacts include friends and family but also service providers, bankers,
and health professionals. Some may have additional notes for birthday reminders, events, and most often
attached to an email which is connected to a social platform, which is connected to a professional profile, which
is connected to a phone number, which is attached to a vehicle, and so on, and so forth.
It should be noted there are privacy breach reporting systems and regulatory schemes being
established in Canada. As of November 1, 2018, all breaches of data will be subject to new mandatory reporting
requirements to Privacy to the Privacy Commissioner of Canada. The requirements are based on 2015
amendments to the Personal Information Protection and Electronic Documents Act that set out a basic breach
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notification framework, along with proposed Breach of Security Safeguards Regulations. Key takeaways are:
Organizations are to report a breach to the Office of the Privacy Commissioner of Canada and inform
impacted individuals if it would be reasonable in the circumstances to believe that the breach poses a
“real risk of significant harm” to affected individuals.
“Breach of security safeguards” means the loss of, unauthorized access to, or unauthorized disclosure
of personal information resulting from a breach of an organization’s security safeguards (such as
physical, organizational and technological measures). Physical measures include things like locked
filing cabinets, while technological measures can include the use of passwords and encryption.
Once the amendments come into force, there are several provisions that the courts will likely be tasked
with refining. For instance, the “real risk of significant harm” standard seems to give businesses a small degree
of control over whether a given cyber incident constitutes a reportable breach or something that can be dealt
with internally. How these reporting requirements will affect the privacy, data and telematics of autonomous
vehicles is yet to be determined.
For autonomous vehicles to interact with their surroundings, they must capture their real-time
environment. These vehicles rely on laser scanners to continuously retrieve data. They can also learn the daily
routines of their passengers. This data is then stored and can be shared with other vehicles so that they can
interact on the road – this is known as vehicle-to-vehicle communication. This data can also be sold to third
parties and can be of great value to data mining companies. Automakers will likely have to make commitments
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to their customers as to how their personal information will be collected, stored, used and shared.
Unlike other technologies where privacy settings can be turned on or off, it is unclear whether
passengers in autonomous vehicles can do the same. On the one hand, not allowing drivers to make their data
private runs the risk of violating privacy rules. On the other hand, allowing them to do so may ultimately limit the
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Canada Gazette, Breach of Security Safeguards Regulations, Part I: Vol. 151 (2017) (September 2, 2017), online:
.
25
AdvocateDaily.com, “Self-driving vehicles face insurance, privacy concerns”, online:
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automation of the vehicle and expose themselves to a greater risk of liability. Manufacturers of autonomous
vehicles must be cognizant of the Personal Information Protection and Electronic Documents Act and ensure
compliance. Privacy implications must also be considered when autonomous vehicles cross borders and share
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information in a jurisdiction that legislates protection of privacy differently.
Cybersecurity is another important issue as data can be stolen from autonomous vehicles. The
Insurance Institute of Canada’s 2016 Report encouraged insurers to develop clear policy terms and language to
address the potential risk of an autonomous vehicle being targeted by a cyber-attack. Once computer operated,
vehicles will face the risk of attack and drivers will need to know whether they are covered in the event that their
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vehicle’s operating system is hacked and redirected in a way that causes damage.
It is essential for manufacturers to recognize their vulnerabilities and implement security safeguards
when handling sensitive personal information. They should obtain minimal personal information, store this
information safely and securely and dispose of information that is no longer required. Manufacturers may be
required to obtain and maintain cyber-insurance for these reasons. But how does the consumer ensure that this
has all happened?
Can Regulators Keep Up?
America, Britain, Singapore and New Zealand are among the leading countries that have embraced
driverless vehicles and created legislation to oversee their development and deployment. The legislation in
these countries provides few barriers toward the integration of autonomous vehicles on public roads and
29
encourages innovation in the automotive industry.
Canada, by contrast, is behind in many respects. The federal government set a budget of $7.3 million
over two years to develop autonomous vehicle regulations. The U.S., by comparison, has invested $200 million
in research, development and infrastructure to support these vehicles. In Canada, Ontario is the only province to
begin enacting legislation related to autonomous vehicles, whereas, in 2018, 29 U.S. States have passed
30
autonomous vehicle legislation in some capacity. The adoption of new legislation is not limited to a specific
region with states from New York, to California, to Texas and Vermont have enacted regulatory schemes. The
enacted regulations include defining autonomous vehicles, ensuring that manufacturers disclose the information
collected by the vehicle to the driver and limiting manufacturer liability if the owner or driver modifies or
augments the technological equipment found in the vehicle. Initially, we will be faced with a situation where
26
AdvocateDaily.com, “Self-driving vehicles face insurance, privacy concerns”, online:
.
27
AdvocateDaily.com, “Self-driving vehicles face insurance, privacy concerns”, online:
.
28
Insurance Institute, “Autonomous Vehicles: Implications for the Insurance Industry in Canada”, (2016), online:
.
29
Sharon Bauer, The Lawyer’s Daily, “Autonomous vehicles will change driving, insurance landscapes in Canada”, (October
30, 2017), online: .
30
Sharon Bauer, The Lawyer’s Daily, “Autonomous vehicles will change driving, insurance landscapes in Canada”, (October
30, 2017), online: .conventional vehicles operated by individuals will be on the same streets as autonomous vehicles. There must
31
be appropriate regulations and standards in place that take this to account.
One of the leading causes for the slower integration of autonomous vehicles in Canada is the lack of
laws and regulations in place. Canada has not yet enacted comprehensive regulations to reflect the current
state of autonomous vehicles. In July, 2015, the Ontario Good Roads Association published a white paper
flagging issues that Canada must tackle before the introduction of autonomous vehicles. Amongst the
recommendations was the need to update or amend the Ontario Traffic Manual, the Highway Traffic Act and the
32
Ontario Provincial Standards.
On January 1, 2016, Ontario became the first province in Canada to create a pilot regulatory framework
to test autonomous vehicles on its roads: Ontario Regulation 306/15 to the Highway Traffic Act. The goal of this
project is to attract and enable research and development in Ontario in this industry. This regulation allows the
province to issue permits to test autonomous vehicles on public roads under strict conditions, including the
mandatory existence of steering wheels and pedals in the vehicle and the presence of a driver. Although these
rigid regulations are in place to ensure public safety, they may also discourage manufacturers from testing their
33
products in Ontario.
Autonomous vehicles are becoming increasingly prevalent in our society. This poses significant
questions as to the proper scope of liability and the particular actors that can and should be held liable.
However, this development in technology also creates significant opportunities including fewer accidents as well
as access to a wealth of information to allow insurance companies to better assess risk and apportion liability.
Conclusions
As discussed throughout this paper, autonomous vehicles will likely bring with them more benefits than
harm. Full integration of autonomous vehicles will be required before we can experience the full potential of the
benefits of this technology. Like with most new technologies, there will always be individuals who are reluctant
to accept change. As such, achieving full integration will occur slowly. The Center for Automotive Research
predicts that the major investments that have been made into autonomous technologies may slow in the future,
with autonomous vehicles representing only a fraction of car sales in the next decade. It is predicted that Level 4
and Level 5 autonomous vehicles will account for less than 4% of all new-vehicle sales by 2030. By 2040,
34
however, this number will increase to approximately 55%. Full integration will require, amongst other changes,
updated policies, regulation, infrastructure and, importantly, mindsets. This slow progression will allow time for
31
McCague Borlack LLP, “Autonomous Vehicles – The Next Frontier”, (November 2015), online:
.
32
Fahad Shuja, “The Roadmap for Autonomous (Self-Driving) Vehicles in Ontario, Canada: White Paper of Ontario Good
Roads Association”, (July 2015), online: .
33
Sharon Bauer, The Lawyer’s Daily, “Autonomous vehicles will change driving, insurance landscapes in Canada”, (October
30, 2017), online: .
34
Michael Martinez, Automotive News, “Electrification, autonomy won’t gain widespread adoption for decades, CAR study
says”, (February 21, 2018), online: .society to adapt and change gradually, easing the transition from our current state to the world of driverless
vehicles.
Moving forward, adjusters must be cognizant of the integration of autonomous vehicles and be prepared
for changes in the industry. First, autonomous vehicles are here, and here to stay. It is a new and exciting time
for insurers and independent adjusters. Second, issues and practices related to data collection and protection
shift monthly towards a willingness to adapt. Third, the possibilities for autonomous vehicles and artificial
intelligence are a game changer for increased accessibility and care of disabled people. Fourth, adjusters
should be prepared to adjust their practices to better assess risks and liability as autonomous vehicles become
the status quo. Finally, we are entering an era of disruptive litigation, where a new body of case law is needed
for better prediction outcomes. This is the same for all cyber issues and will only be resolved as we continue to
adopt, use, and respond to autonomous vehicles and driverless roads as the new normal.NOTES
Cannabis Legalization and
Socioeconomic Realties:
Cutting Through The Haze
Fletcher Room
PRESENTERS:
Bryan Larkin Robert Solomon
Police Chief Professor
Waterloo Regional Police Services University of Western Ontario
Trina Fraser
Partner
Brazeau Seller Law
Sponsored by:Cannabis Legalization and Socioeconomic Realities: Cutting Through The Haze Presenter Information Bryan Larkin Police Chief Waterloo Regional Police Services Bryan was appointed as the 7th Chief of Police of the Waterloo Regional Police Service on August 31, 2014 by the Waterloo Regional Police Services Board. Bryan began his policing career in 1991 as a member of the Waterloo Regional Police Service, working as a front-line Constable assigned to Division #1 in Kitchener. Over the course of his career, Bryan has held a number of progressively responsible positions including; Community and Media Relations, Special Assignments, Traffic Services, Human Resources, Recruiting, Media Officer, Executive Officer to the Chief of Police, and Superintendent of Central Division. Chief Larkin is an active member of the Canadian and Ontario Associations of Chiefs of Police. He serves the Ontario Association of Chiefs of Police as Past President as well as represents the OACP on the Ontario Police Memorial Foundation and is the Co-Chair of the Provincial Police Joint Health and Safety Committee. Bryan also serves as the co-chair on the CACP Drug Advisory Committee. Bryan is a member of the Board for Nutrition for Learning and is a member of the United Way Campaign Cabinet for Waterloo Region Communities. Bryan is a strong believer of community volunteerism and is proud to support many causes including the United Way and Ontario Special Olympics. In 2013, Bryan was recognized for his longstanding commitment to community volunteerism and for his leadership within the OACP and awarded the Queen’s Diamond Jubilee Medal. In September 2016, Bryan was invested as a Member of the Order of Merit of the Police Forces by his Excellency the Right Honourable David Johnston. Chief Larkin is committed to enhancing the effectiveness of operational policing services while developing long-term strategies to build a strong, vibrant and healthy Waterloo Region.
Trina Fraser Partner Brazeau Seller Law Trina, co-managing partner at Brazeau Seller Law, is an effective problem solver and trusted advisor to her business clients. While having a broad business law practice, Trina’s area of expertise is cannabis law. As head of BSL’s CannaLaw® group, Trina has emerged as a leading practitioner in cannabis law and is often called upon for comment and opinion. In addition to acting for licensed producers of medical cannabis in Canada, she advises various other cannabis industry participants such as clinics, software/application providers, investors and capital funds, as well as those seeking entry to the soon-to-be legalized consumer (recreational) cannabis market. Trina is a registered trademark agent and provides counsel to her clients in protecting their intellectual property. She studied at Queen’s University, where she earned Bachelor of Commerce and Juris Doctor degrees. Community involvement is very important to Trina. She sits on the board of directors of The Snowsuit Fund and provides legal services on a pro bono basis to several local not-for-profit organizations, including the Ottawa Regional Cancer Foundation. Robert Solomon Professor University of Western Ontario Professor Solomon holds the rank of Distinguished University Professor in the Faculty of Law at Western University. He has been engaged in research on alcohol and drug policy, and criminal law for over 45 years. He has served as the National Director of Legal Policy for Mothers Against Drunk Driving Canada since 1998. He was a member of the Board of Directors of the Ontario Addiction Research Foundation, and a founding member of the Canadian Drug Reform Foundation. He has frequently appeared as an expert witness before Parliamentary Committees, briefed the Prime Minister and other senior Parliamentarians, and served as a consultant to numerous government and other organizations. His recent interests include the pending legalization of recreational cannabis use and new drug- impaired driving legislation.
NOTES
Artificial Intelligence:
Leveraging its Potential to
Transform Your Sales & Service
MFUA Room
PRESENTERS:
Andrew Lo Rob Fursey
President and CEO Consultant
Kanetix Ltd IBM GBS
Hashmat Rohian
Sr. Director & Managing Enterprise Architect, Architecture, IT Strategy & Applied Innovation
The Co-operators Group Ltd.
Sponsored by:Artificial Intelligence: Leveraging its Potential to Transform Your Sales & Service Presenter Information Andrew Lo President and CEO Kanetix Ltd. As President & CEO, Andrew Lo leads all digital innovation and operations for Kanetix Ltd., Canada’s largest digital customer acquisition platform for insurance and financial services. He is also a Business Strategy Advisor for Ryerson University’s DMZ helping to develop digital entrepreneurs and start-up companies at the world’s #1 university incubator. Andrew has 25 years of experience as a business, technology and digital leader for FinTech companies such as Filogix and D+H, and has developed organizations from start-ups into industry shaping ventures with over 5,000 employees. Hashmat Rohian Sr. Director & Managing Enterprise Architect, Architecture, IT Strategy & Applied Innovation The Co-operators Group Ltd. Hashmat leads the delivery of the Enterprise Architecture and IT Strategy work-plan and objectives. He also maintains in depth knowledge of strategic business plans and help drive IT investments and the Applied Innovation portfolio to support operating and strategic imperatives. Hashmat's career has centred on ‘digital’ and ‘transformation’ with a focus on delivering significant and sustainable value from strategy to execution. Hashmat also teaches software engineering, data science and agile delivery at top Canadian higher learning institutions. He co-founded DisrupIT Labs that helps deliver cross-functional, rapid prototyping capability to push and test new value propositions in the market fast. Rob Fursey Consultant, IBM GBS Watson Al Practice With the advent of Watson and cognitive computing, Rob has become an expert on IBM’s Watson product suite and is now leading the implementation of AI solutions for clients across Canada. Specifically, Rob and his team are looking at how IBM Watson can revolutionize the customer experience and bring about new and innovative approaches to emerging organizational challenges. While his industry focus has been around financial services, he and his team have worked on Watson solutions with organizations in many industries including telecommunications, aerospace, public service, and more.
NOTES
Lunch Event Sponsored by:
Up Close and Personal –
Senior Leadership Panel
McFadden/Fletcher Rooms
PRESENTERS:
Monica Kuzyk
Vice President Claims
Curo Claims Services
MODERATOR
Paul MacDonald Kadey Schultz
Executive Vice President, Personal Insurance Partner
Economical Insurance Schultz Frost LLP
Tim Shauf
President & CEO
The Commonwell Mutual Insurance
Dave Smiley
Chief Operating Officer
UNICA Insurance
Sponsored by:Up Close and Personal – Senior Leadership Panel Presenter Information Monica Kuzyk Vice President Claims Curo Claims Services Monica joined OTIP (Ontario Teachers Insurance Plan) in 1994. She has over 25 years of professional experience in the property casualty insurance industry. In 2009, Monica was appointed Vice President of Curo Claims Services, a member company of the OTIP group of companies. Monica has earned both her CIP and FCIP designations, as well the CRM designation. After attaining her Masters Certification in Risk Management, Monica was awarded an ORMP designation by the International Counsel for Operational Risk Management. In 2016, Monica earned the Chartered Director (C.Dir.) designation from McMaster University. Actively involved in the insurance community, Monica participates on the Academic Council of the Insurance Institute as well, serves as Chair on the Program Advisory Committee of the Business of Insurance Program at Conestoga College. Serving on the Executive Committee of the Canadian Independent Adjusters Association, Monica was appointed to President, in September 2017. Paul MacDonald Executive Vice President, Personal Insurance Economical Insurance Striving for simplicity is a goal that has driven Paul to find the most effective solutions for customers and business partners alike. As the leader of our personal lines division, he has made it a mission to give our broker network a streamlined experience to navigate the complexities of insurance with ease. An accomplished and energetic executive with experience leading national initiatives, managing business operations, and co-ordinating competing stakeholder interests, Paul has held several senior positions within the insurance industry. He is especially skilled at product and distribution strategy, leading large-scale projects in business transformation and integration, and client segmentation. Paul holds an Executive MBA in Strategy and Operations from the joint Kellogg-Schulich Schools of Business, a Bachelor of Laws degree (LL.B) from Dalhousie University, and a Bachelor of Arts (Hons) degree from Queen’s University. He has also completed post-graduate work in Canadian Risk Management at the University of Toronto, a Masters Certificate in Six Sigma (Black Belt) from York University, and has a Chartered Director designation from The Directors College.
Tim Shauf President & CEO The Commonwell Mutual Insurance Tim is the President and CEO of The Commonwell Mutual Insurance Group based out of Lindsay, Ontario with regional offices in Perth and Alexandria. He graduated with a B.A. in Business Administration from Trinity Western University (Langley, B.C.) and started his insurance career with Algoma Mutual Insurance Company in 1992 and relocated to a senior leadership role with the former Farmers’ Mutual Insurance Company (Lindsay) in 1999. His 25 year involvement in the mutual insurance industry has included a variety of committee involvement and terms on the Boards of Directors of both the Ontario Mutual Insurance Association and Farm Mutual Re. Tim is a Past President of the Governing Council of the Insurance Institute of Ontario, Past Chair of the Ross Memorial Hospital Foundation, in Lindsay, Ontario and currently a member of the National Association of Mutual Insurance Companies (NAMIC) Board of Directors based in Indianapolis, Indiana, where he also serves on their Membership Committee. In addition to other charitable leadership roles, he takes a special interest in reading and learning about leadership and organizational motivation. He lives with his wife, Sheila, in Lindsay where they enjoy spending time with outdoor activities with their 3 grown children, son-in-law and one grandson. Dave Smiley Chief Operating Officer Unica Insurance After 18 years with a large international insurer, Dave decided to join a small Canadian company that required a complete reinvention. Dave has always been passionate about creating a culture within an organization that fosters innovation, teamwork, and a commitment to delivering something special in the market place. During the past 9 years with Unica, Dave and the executive team have transformed their business into a niche focused insurer with a real commitment to service and broker relationships. Despite the challenges faced by the Canadian insurance industry, Dave is incredibly optimistic about the future of Unica as it continues its journey toward being a unique insurer focused on specific commercial segments and VIP personal lines. Dave holds a Bachelor of Science Degree with majors in mathematics and psychology from Acadia University. Dave is a strong believer in the fundamental role that education plays in ensuring our industry delivers a high level of professionalism. With this in mind, he obtained his FCIP in 1996 and has been an Ambassador with the Insurance Institute for several years.
MODERATOR Kadey Schultz Partner Schultz Frost LLP Kadey BJ Schultz is the co-founding partner of Schultz Frost LLP, a Toronto based litigation firm specializing in coverage, defence and prosecution work for insurers, self-insured entities and re- insurers. For 20 years, Kadey has acted as anti-fraud counsel for various insurers, defending and prosecuting against opportunistic and vertically integrated fraud. She is a strategic partner with many self-insured programs, designing and enforcing prevention and mitigation systems, in addition to handling policy design, coverage and defence matters. This work has naturally led Kadey to her engagement with Artificial Intelligence, Cyber Resilience and Cyber Risk work. As part of Kadey’s professional commitment to the insurance industry, she is completing her Certified Risk Management designation with the University of Toronto (December 2018). Kadey’s risk management training augments her strategic advice, whether on a litigation file or while engaged to provide policy design, curriculum development or a Gap Analysis. She is speaking at RIMS Canada in Newfoundland in September on Cyber Risk and Social Media. Kadey is a prolific speaker and is extensively published within the insurance industry, regularly contributing to RIMS Canada, the Insurance Institute of Ontario, the Ontario and Canadian Insurance Adjusters’ Associations, the Law Society of Ontario and the Canadian Defence Lawyers Association. Since 2014, she has been an adjunct professor with the University of Windsor Faculty of Law and is a past adjunct professor with Brock University and guest faculty with the Ontario Provincial Police and Ontario Police College. In 2018, Kadey was honoured with the Lexpert Zenith Mid-Career Excellence Award in Commercial Insurance, after winning the Lexpert Rising Stars Top 40 under 40 Lawyers In Canada award in 2015. She was acknowledged as a US/Canada Litigator to Watch in 2014. Kadey received the Richard B. Lindsay Exceptional Young Lawyer Award from the Canadian Defence Lawyers Association in 2010. In addition to Kadey’s vibrant legal and consulting practice, she is a member of the Board of Directors of the Holland Bloorview Kids Rehabilitation Hospital Foundation in Toronto and is on the Council of the Medico-Legal Society of Toronto.
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